[NeedsA75]

For those of you studying for AUD, I thought we could have a thread where we asked each other questions that we are unsure of…I saw a similar thread for BEC and it really helped me in certain areas..

It goes like this: answer the most recent question in the thread, and then ask a question of your own. It doesn’t have to be a question right out of the study material, but can be more of a general question..

I’ll go first:

Q. How long does an auditor have to retain their working papers after the completion of an audit for issuers and non-issuers?

AUD - 96
BEC - 86
FAR - 76
REG - 92

PETH - 92
Licensed in California

 

[Anonymous]

A:
Issuers:7 years after audit release date
Non-issuers:5 years after audit release date

Q: What are the 10 GAAS?

Do NOT quit! There's more in you and if you quit you'll never see it. Show you that you can do it.

AUD Passed  78
BEC Passed  79
FAR Passed  77
REG Passed 76

I'm tired of operating in fear and mediocrity. It's time to try. It's time to do. It's time to go.

[mooseonloose]

I like this idea
7 years for issuer (public company)
5 years for non issuer (private company)

What's the difference between preparation, compilation, and review?

AUD - NINJA in Training
BEC - NINJA in Training
FAR - NINJA in Training
REG - NINJA in Training

BEC: April
AUD: April
REG: July
FAR: Sept

[mooseonloose]

10 GAAS
tip
pie
acdo
Training, independent , professional care
Plan and supervision, internal control, entity and environment
Accounting =GAAP, consistency, disclosure, opinion

AUD - NINJA in Training
BEC - NINJA in Training
FAR - NINJA in Training
REG - NINJA in Training

BEC: April
AUD: April
REG: July
FAR: Sept

[NeedsA75]

OK, can anyone tell my why the new Becker book doesn't have the 10 GAAS laid out anywhere but the old book does??

A: There is no report issued for a preparation…it provides no assurance and is not an attest engagement. A compilation is an attest engagement that provides no assurance. Independence and management rep letter are not required for a compilation. A review is an attest engagement that provides limited assurance. It requires independence and a management rep letter as well as applying inquires to internal management and analytical procedures. All of these are governed by SSARS and none of them require an assessment of fraud or internal controls.

Q: Who is required to have a single audit?

AUD - 96
BEC - 86
FAR - 76
REG - 92

PETH - 92
Licensed in California

 

[mooseonloose]

@NeedSA75 you are right. I have my friends note regarding the 10 GAAS, otherwise I wouldn't have known.

A: Public companies? I need to look into this further. ugh

what opinion is given on letter for underwriters?

AUD - NINJA in Training
BEC - NINJA in Training
FAR - NINJA in Training
REG - NINJA in Training

BEC: April
AUD: April
REG: July
FAR: Sept

[NeedsA75]

The single audit requirement stems from GAS and requires companies who expend more than 750k in federal assistance to comply with the single audit requirement

A. Disclaimer?? I know comfort letters provide negative assurance and are restricted as to their use, not sure on the opinion you give..

AUD - 96
BEC - 86
FAR - 76
REG - 92

PETH - 92
Licensed in California

 

[mooseonloose]

Positive assurance is provided for:
A Cpa independence
compliance as to form of financial statement with the SEC act (if audited)
Negative assurance
unaudited financial statement

750k? I thought it was 500K. Do you know where in becker states that?

what are the 6 elects of quality control:

AUD - NINJA in Training
BEC - NINJA in Training
FAR - NINJA in Training
REG - NINJA in Training

BEC: April
AUD: April
REG: July
FAR: Sept

[NeedsA75]

Hey moose, I believe 500k was the old limit. It does mention 750k in Becker A6 I believe. Are you using the updated text?

A: Leadership responsibilities, acceptance and continuance of new clients, engagement performance, monitoring, ethical requirement, HR

Q: When should you refer to the work of a specialist in the audit report?

AUD - 96
BEC - 86
FAR - 76
REG - 92

PETH - 92
Licensed in California

 

[Spartans92]

This is great idea.
A: Generally you don't have to refer them if you take responsibility, similar to component auditor. Only refer when you do not wish to take responsibility. On top of that you should gain an understanding of their work. If poster don't mind can we also get an answer?
Q: Give an example how auditor can test managemtn assertion on valuation and allocation of inventory?

BEC - 76
REG- 67, 85
AUD-63, 74, 80!!
FAR-65, 62, 57, 79

3 down 1 more to go. BEC is on the Line 🙁

BEC- PASS

[r_f_94]

Valuation & Allocation
Test pricing method used by the client- so that the proper inventory value is attained
Apply lower-of-cost-or-market rule- so that the proper inventory value and any losses are recognized and disclosed
Perform analytics- such as, gross profit percentage calculations,inventory turnover ratios,and number of days sales in inventory ratio analysis.
Test cost accumulation process- so that the ending inventory and cost-of-goods-sold are valued properly.
Review the overhead allocations and rates- for accuracy when compared with actual experience

Q: What are the difference in audit reports for non-issuers and issuers?

[mooseonloose]

@need, Yesm I am using the current text, however my notes are old.

^ what Spartan said, and if reports are modified because of specialists findings, then we mention their name. ?

A. Spartan we can inspect the inventory.

Q: name different types of letters; who provides them and to who.

AUD - NINJA in Training
BEC - NINJA in Training
FAR - NINJA in Training
REG - NINJA in Training

BEC: April
AUD: April
REG: July
FAR: Sept

[Spartans92]

Right on. Those works.
A: Issuers have to test the operating effectiveness of controls while non-issuers don't. PCAOB governs the issuer and AICPA for non-issuers. IDK LOL

Q: What should auditors do if management refuses to correct a misstatement that is material

BEC - 76
REG- 67, 85
AUD-63, 74, 80!!
FAR-65, 62, 57, 79

3 down 1 more to go. BEC is on the Line 🙁

BEC- PASS

[Spartans92]

@moose, inspecting would provide existence more than valuation I think. back to work..

BEC - 76
REG- 67, 85
AUD-63, 74, 80!!
FAR-65, 62, 57, 79

3 down 1 more to go. BEC is on the Line 🙁

BEC- PASS

[mooseonloose]

Spartan
a: withdraw
I hate assertions with passion. I thought we can inspect inventory to see if they are valued properly.

AUD - NINJA in Training
BEC - NINJA in Training
FAR - NINJA in Training
REG - NINJA in Training

BEC: April
AUD: April
REG: July
FAR: Sept

[Spartans92]

@moose, I think we need to bring this to the BOD first and if they cant do anything we need to disassociate with the F/s and/or report to regulatory agencies if practicable, I will post more on transaction cycle/ assertions later for u 🙂

BEC - 76
REG- 67, 85
AUD-63, 74, 80!!
FAR-65, 62, 57, 79

3 down 1 more to go. BEC is on the Line 🙁

BEC- PASS

[Author]

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